Shareholders are referred to the Company's unaudited interim results for the six months ended 30 June 2017, published on the Stock Exchange News Service ("SENS") on 8 August 2017 and in the press on 10 August 2017, in which they were advised of the Company's declaration of an interim distribution of fully-paid Mpact ordinary shares of no par value ("the Scrip Distribution") to ordinary shareholders ("Shareholders") recorded in the register of the Company at the close of business on the Record Date, being Friday, 8 September 2017 ("the Record Date").
As set out in the announcement, Shareholders not electing to receive the Cash Dividend in respect of all or part of their shareholding were entitled to receive that number of Scrip Distribution Shares determined in the ratio of 0.54985 Scrip Distribution shares for every 100 ordinary shares held on the Record Date.
Where a Shareholder's entitlement to Scrip Distribution Shares, calculated in accordance with the above ratio, gave rise to a fraction of a new ordinary share, such fraction of a new ordinary share was rounded down to the nearest whole number, resulting in allocations of whole ordinary shares and a cash payment for the fraction. The applicable cash payment was determined with reference to the VWAP of an ordinary Mpact share traded on the JSE on Wednesday, 6 August 2017, (being the day on which an ordinary Mpact share began trading 'ex' the entitlement to receive the Scrip Distribution or the Cash Dividend alternative), discounted by 10%. The applicable cash payment was announced on SENS on Thursday, 7 August 2017.
In terms of the Scrip Distribution, 579,372 new ordinary shares were issued today to Shareholders who did not elect to receive the Cash Dividend in respect of all or part of their shareholding, resulting in a capitalisation of the distributable retained profits of the Company of R15 805 268.16. Shareholders recorded in the register of the Company at the close of business on the Record Date holding 65 477 487ordinary shares elected to receive the gross Cash Dividend of 15 cents per ordinary share, resulting in a total gross Cash Dividend of R9 826 072.54, which was paid out of the distributable retained profits of the Company.
Share certificates, where applicable, were dispatched to certificated Shareholders at their own risk, and the Cash Dividend payments were made/Central Securities Depository Participant/broker accounts of dematerialised Shareholders were credited, today.
11 September 2017
RAND MERCHANT BANK (A division of FirstRand Bank Limited)